Originally aired on KAOX, KID, KNRS, and KSL

Make Your Money Work for You: A Personal Journey Through Financial Planning and the Retirement Money Map

By Mike Stevens, Capital Wealth Advisors
Originally aired on KAOX, KID, KNRS, and KSL on August 16, 2025

Key Takeaways

• Personal tragedy led to professional purpose: Mike Stevens switched from pre-med to finance after his father's unexpected death at 49 left his mother without an estate plan or financial guidance
• The Retirement Money Map™ has five critical components: income planning, tax planning, inflation planning, legacy planning, and investment management
• Plan to age 100, not 85: Most retirement plans underestimate longevity, potentially leaving retirees financially vulnerable in their later years
• Bucket strategy is essential: Combine growth accounts (stocks) with protected accounts (fixed index annuities with 0% floor, ~10% cap) to weather market volatility
• Taxes are "on sale" now: With federal deficit over $36 trillion and historic low tax rates, strategic tax planning today can save tens or hundreds of thousands in future tax costs
• Medicare Plan G supplements are identical across carriers: The only difference is price - shop for the lowest cost since all federally mandated plans offer exactly the same benefits
• Tax planning vs. tax preparation: Most CPAs do tax preparation work, not tax planning - you need both for optimal retirement outcomes

My Unexpected Journey from Operating Room to Financial Planning

When I was a kid, I never dreamed about doing retirement planning. That would be absurd - what three-year-old thinks about portfolio management and tax strategies? My path to becoming a financial advisor was completely accidental, born from tragedy and necessity.

I was 45 when I recorded this show, which makes what happened to my family even more real to me now. We lost my dad, Len, unexpectedly at age 49. When you're young, 49 seems ancient. When you're in your 40s, you realize how young that really is.

My dad was an incredible man and a successful custom home builder who handled all the investments, taxes, insurance, and financial planning for our family. My mom, Susie, was understandably hands-off with the financial details - she trusted dad completely. I was serving a two-year mission for my church when he passed away.

When I returned from my mission, my mom sat me down and shared some devastating news. "You should know a few things," she said. "Your dad didn't have the estate properly in order." And honestly, what 49-year-old does comprehensive estate planning? It's not exactly top of mind when you think you have decades ahead of you.

The Nightmare of an Unplanned Estate

What followed was every family's worst nightmare. Without proper estate planning, lawyers got involved. My dad's construction projects needed to be wrapped up, and people started approaching my mom saying things like, "Susie, Len owed me for this project. We could settle at this amount if you pay now and we don't have to go to court."

The problem? My mom had no idea what was legitimate and what wasn't. Unfortunately, some people will take advantage of others' misfortune. She was getting banker boxes from attorneys filled with my dad's financial documents, and the attorneys' fees were expensive - we watched the estate my parents had built together dwindle in legal fees as everything went through probate.

If you've ever dealt with probate, you know it's horrible. Do everything you can to avoid it.

Adding insult to injury, my mom and dad had a life insurance policy that had lapsed just three months before my dad passed away. When it rains, it pours.

At the time, I was in college studying to become an orthopedic surgeon. I still remember being in anatomy and physiology class, dissecting a cadaver, thinking, "This is really not as much fun as I thought it was going to be." But simultaneously, I was learning about financial matters to support my mom, and I found myself genuinely gravitating toward what I was learning about money, investments, and planning.

I felt prompted in my heart that this was the path I needed to go down. So I switched from medicine to finance, and I feel extremely blessed that I'm in a position to help people. I'm not in an operating room, but I'm still changing lives and helping people.

I'm a big believer that when God closes one door, He opens another one. The opportunity to become a financial advisor was never anything I thought I'd pursue in my life, but holy smokes, I love what I do. Our team loves what we do, and we feel very blessed to help and serve people.

Why Retirement Planning Became My Focus

You might wonder what led me to focus specifically on retirement planning rather than general financial services. The answer is simple: my mom was nearing retirement age and desperately needed a comprehensive plan, not just a portfolio.

When I first entered the industry, being completely green and not understanding how things worked, I thought all financial advisors did the same thing. I quickly learned they don't.

You have advisors who focus on accumulation - helping you build wealth during your working years. Then you have advisors who focus on distribution - helping you successfully navigate retirement and make your money last.

The Problem with "Portfolio-Only" Thinking

Most of those big wirehouse companies you're familiar with focus purely on rate of return. If you ask them about tax strategies, they'll say, "That's not our wheelhouse." Ask about optimizing Social Security, and they'll respond, "We don't do that either." Legacy planning? Healthcare planning? "Nope, not what we do. We focus on just pure rate of return."

I quickly realized that most people were in this camp. Most people had a portfolio - they didn't have a plan.

You've heard the saying: necessity is the mother of invention. My mom really needed a plan. She had a portfolio from my dad, but that wasn't enough.

Creating the Retirement Money Map™

That's when I put my head down and started figuring out: How do we create an income plan? A tax plan? A legacy plan? A healthcare plan? How do we optimize Social Security and navigate taxes strategically?

What we created in our office is called our Retirement Money Map. We've since trademarked it, and my team has continuously improved upon what I originally developed, keeping up with the constant changes in the financial world.

People absolutely love the Retirement Money Map because it gives them something most financial products can't: peace of mind through comprehensive planning.

The Five Essential Components of Retirement Planning

Our Retirement Money Map focuses on five critical areas that every retirement plan must address:

1. Income Planning: Begin with the End in Mind

Stephen Covey always said, "Begin with the end in mind." Our retirement planning starts with this principle, but we take it further than most advisors.

Most people doing retirement planning assume their plan needs to last until age 85. I think that's not long enough. I recently saw a nun on the news who's 114 years old and still a soccer fan! I'm not saying most people will live that long, but we want to make sure you have a huge runway.

We plan to age 100.

We reverse engineer from age 100 and put in place what we call "expense plan guardrails." We figure out:

• What your monthly income needs to be
• How much you want to spend each month
• We stress test it to ensure sustainability

The result? You know that as long as you don't go over a certain number each month, you're financially secure. And at a minimum, you know you can spend at least a certain amount to have the retirement you've always dreamed about.

2. Tax Planning: Your Money Is "On Sale" Right Now

Let me share something that might surprise you: taxes are on sale right now.

I often get sideways looks when I say this, but let me show you visually what I mean. The Tax Foundation website shows a blue line that begins in 1913 - when federal income tax began in the United States.

This line shows tax rates going up and down over the decades, but it goes crazy high in the 1940s, 50s, and 60s - reaching as high as 94% in the top brackets.

Here's a fun example: Before Ronald Reagan became president, when he was still an actor, he made exactly two movies per year. Why? Because he made about $100,000 per year from the studio, and anything over $200,000 (which was significant money back then) was taxed at 94 cents per dollar.

Reagan figured: "Why would I work if I'm essentially working for free?" So he made his two movies, then spent the rest of the year riding horses on his ranch. When he became president, he dramatically brought those tax rates down.

Right now, we're at historic lows on that tax chart. While it might not feel like taxes are on sale, they've been much higher historically.

The Trillion-Dollar Question

Here's the critical question: With a federal deficit well over $36 trillion and climbing daily, do you think taxes are staying the same, going down, or going up in the future?

To put $36 trillion in perspective: Go back in time just one trillion seconds, and you're going back over 32,000 years. We're dealing with an incomprehensibly large debt.

Most people I talk to believe taxes will increase in the future. I don't have a crystal ball, but in my opinion, there's no way around it.

If you're concerned about taxes, what is your tax strategy? If taxes are on sale right now and you're not doing anything about it, you could potentially be losing tens if not hundreds of thousands of dollars in future tax costs that you could address today.

3. Investment Management: The Bucket Strategy

No financial advisor can control the stock market. If someone tells you they can guarantee certain returns, run the other way. There are no guarantees in investing.

But here's what we can control: how we structure your investments to weather market volatility.

We use a bucket strategy with two types of accounts:

Growth Buckets (Stock Portfolios):

• Diversified stock investments
• No cap on upside potential
• Hopefully beat inflation over time
• Subject to market volatility

Protected Buckets (Fixed Index Annuities):

• 0% floor - you never lose money when markets decline
• ~10% cap on upside when markets perform well
• Backed by reputable, A+ rated insurance companies that have been around for decades

How the Strategy Works in Practice

Here's the real power: We play ping pong between these buckets for your retirement income.

When markets are down, we leave your stock portfolio alone - you don't sell, so technically you don't have a loss. Your retirement paycheck comes from your protected bucket.

When markets are up, your growth bucket participates in the gains while your protected bucket provides that steady foundation.

This strategy was put to the test in 2008. I had clients who came to our office after the market crashed saying, "We had everything with one of the big companies, all in the stock market. My husband freaked out in 2008 and told our advisor to sell everything."

The market went down about negative 49% at its low point, and they locked in losses at around negative 42%. Imagine having $1 million in retirement savings and suddenly only having $600,000. Do you know how many years that takes to make up?

That seriously short-changed what they wanted to do in retirement. That's when I explained our bucket strategy, and the light bulb went off. "This totally makes sense," they said. "Why did we put all our eggs in one basket?"

Remember what your mom said: Never put all your eggs in one basket. Mom was right.

4. Inflation Planning

Most people can't answer this question: "What's your inflation strategy?"

We've seen inflation surge recently, and it directly impacts your purchasing power. If your money isn't growing at least as fast as inflation, you're losing ground every year.

Your growth bucket (stock portfolio) should hopefully beat inflation over time. Your protected bucket provides stability while still participating in some market upside through caps.

But inflation planning goes beyond just investment returns. It's about structuring your entire retirement to maintain your lifestyle as costs increase over 20, 30, or 40 years of retirement.

5. Legacy Planning: Avoiding My Family's Mistakes

This one is personal for me. What happened to my family after dad's unexpected death should never happen to another family.

Legacy planning includes:

• Proper estate planning to avoid probate
• Life insurance strategies
• Tax-efficient wealth transfer
• Healthcare directives
• Powers of attorney

The goal is ensuring that if something happens to you, your loved ones are taken care of and know exactly what to do. No banker boxes from attorneys. No people taking advantage of your family's misfortune.

Signs You Need a Financial Professional

After almost 20 years in this business, I've worked with incredibly smart people who've created their own spreadsheets and retirement plans. When they bring in their spouse for a complimentary review, I often say, "This is phenomenal work. Really good."

But then I ask the critical question: "If you pass away, is your spouse going to know what to do?"

Usually, the spouse shakes their head no.

The Value of Professional Guidance

It's not that you can't do some of this stuff yourself. But having a trusted partner you've developed a relationship with means that if the unspeakable happens, you know your loved one will be taken care of.

Beyond that, here are areas where most people need help:

Inflation Strategy: Most people have never even thought about this when I ask them to share their inflation plan.

Tax Strategy: People hope their CPA will give them strategies, but when I ask how that's working out, the usual response is "not good at all."

Here's the thing: CPAs and tax professionals do tax preparation work, not tax planning work. There's a huge difference.

Medicare Navigation: The alphabet soup of Medicare Parts A, B, D, and supplemental plans F, G, etc., is confusing. Plus, insurance agents start flooding your mailbox at age 64 because they want to sell you policies.

Social Security Optimization: There are over 567 different filing combinations for Social Security. Getting this wrong can cost you tens of thousands in lifetime benefits.

A good financial advisor helps you navigate all these pitfalls and optimize every aspect of your retirement, not just your investment returns.

Medicare: What Every Utah Retiree Needs to Know

Let me clear up some major confusion about Medicare that could save you thousands of dollars.

The Medicare Enrollment Timeline

If you're 64 like our listener Patty, you need to enroll in Medicare Part A at age 65. But that doesn't mean you have to start using Medicare benefits immediately if you're still working and have employer coverage.

The Supplemental Plan Secret

Here's something that frustrates me tremendously about the insurance industry: Medicare supplemental plans are all federally mandated to be exactly the same.

If you get a Medicare Supplement Plan G from Company A, Company B, or Company C, there's no difference between the plans. They all offer 100% identical benefits.

The only difference is price. You want to choose the company with the lowest cost because you're getting exactly the same coverage.

But here's the industry sin that really gets me: Some insurance companies offer the same exact plan at three different price points - high, medium, and low. It's the exact same plan, but they present it as if paying more gets you better coverage.

It doesn't. It's the same plan regardless of which price tier you choose.

Why This Matters for Utah Retirees

This is why we have a Medicare specialist on our team at Capital Wealth. We take your name and ZIP code, enter it into a national database, and find the company and plan with the lowest cost for your area.

Remember: You can change your Medicare plan every single year during open enrollment. You're not stuck forever. Even if you like your current company, explore whether they offer a cheaper version of the exact same plan.

For Utah residents, this price shopping can save hundreds or even thousands annually - money that stays in your pocket for the things that matter most in retirement.

Utah-Specific Retirement Considerations

Living in Utah presents unique opportunities and challenges for retirement planning. Let me address some scenarios specific to our state.

Utah Cost of Living Advantages

Utah offers a relatively affordable cost of living compared to many Western states, which can stretch your retirement dollars further. However, this also means we need to plan for potential cost increases as Utah continues to grow and develop.

Example: A retiree in Salt Lake City might have lower housing costs than someone in Denver or Phoenix, but they need to factor in Utah's unique tax situation and potential healthcare costs.

Utah Tax Considerations

Utah has a flat income tax rate currently at 4.65%, which affects how we structure retirement distributions. Unlike some states that don't tax retirement income, Utah taxes:

• IRA and 401(k) distributions
• Pension income
• Some Social Security benefits (though with exemptions for lower income levels)

This makes tax planning even more critical for Utah retirees. Strategic Roth conversions and withdrawal sequencing can significantly impact your after-tax retirement income.

Utah Healthcare Landscape

With excellent healthcare systems like Intermountain Healthcare and University of Utah Health, Utah retirees have access to quality care. However, this also means planning for potentially higher healthcare costs as these systems tend to be premium providers.

Geographic Considerations

Whether you're retiring in:

• Salt Lake Valley (higher costs, more amenities)
• Utah County (Provo/Orem area, growing rapidly)
• Northern Utah (Logan, Ogden - more affordable)
• Southern Utah (St. George - popular retirement destination)
• Rural areas (lower costs, potentially limited healthcare access)

Each area presents different cost structures and lifestyle considerations that impact your retirement money map.

Real Client Questions: Utah Mailbag

Let me address some real questions from our Utah listeners that represent common concerns I see across the state.

Kay from Bountiful: "I Don't Know as Much as I Thought"

Question: "I just heard your show for the first time and realized I don't know as much about retirement planning as I thought. I've been contributing to a 401(k) at work for years and have some other savings, but what else should I be thinking about?"

Kay, congratulations on contributing to your 401(k) for many years and having additional savings. You're ahead of many people. But you've identified the key issue: a portfolio alone is not a plan.

Here's what else you should be thinking about:

Risk Management: How does your 401(k) look? Is it too aggressive for someone approaching retirement? Too conservative to beat inflation?

Savings Strategy: Are your additional savings earning almost nothing in bank accounts? If so, you might be drastically reducing your future purchasing power by not keeping up with inflation.

Protection Planning: If something medical happens to you when the market's down, will that financially collapse your retirement plans?

Income Planning: How will you turn your 401(k) balance into a paycheck that lasts the rest of your life?

The way to address all these concerns is comprehensive planning - exactly what our Retirement Money Map provides.

Patty from West Jordan: "Medicare Confusion at 64"

Question: "I'm 64, so Medicare is my big concern right now. All the mail I'm receiving makes me wonder when the best time to sign up would be."

Patty, you're experiencing what every 64-year-old in Utah goes through - getting flooded with Medicare marketing because every insurance agent wants to sell you a policy.

Remember the key points I mentioned earlier:

• Enroll in Medicare Part A at 65
• All Medicare Supplement plans with the same letter (like Plan G) are identical
• Shop only on price since benefits are exactly the same
• You can change plans every year

For Utah residents specifically, our Medicare specialist can show you the lowest-cost options available in your ZIP code. Don't fall for the "premium" versions of identical plans.

Laurie from Draper: "What Questions Should We Ask?"

Question: "My husband and I have been saving for retirement for a long time, but we're realizing we need to get serious about planning. What basic questions should we ask when meeting with a financial professional?"

Laurie, this is like the "dating game" for financial advisors. Here are the essential questions:

1. How long have you been a financial professional? If this is your life savings, you probably don't want someone two or three years out of school.

2. What areas do you focus on? Beware of "one-trick ponies" who only sell insurance or only do investments. You need holistic planning.

3. How many people are on your team? You want to know you'll have ongoing support, not just one person.

4. Are you captive or independent? Captive advisors can only offer their company's products. Independent advisors (like us) can recommend what's truly best for you.

5. What licenses and designations do you hold? Look for comprehensive credentials and continuing education.

6. Do you focus on accumulation or distribution? For retirees, you want someone who specializes in distribution - getting you through retirement, not just to retirement.

7. Do you provide written strategies or just portfolios? You need a comprehensive plan, not just investment management.

8. How are you compensated? If someone's managing your money, you deserve to know how they're paid.

Ken from Logan: "The Travel Dilemma"

Question: "My wife wants to travel after retirement, but I'm not interested. How do we budget for her trips and my hobbies separately?"

Ken, this is more common than you might think! While I'm not a marriage counselor, I will say that having a happy wife usually equates to having a happy life.

The solution is in your expense planning guardrails - part of the Retirement Money Map. When we create your plan, we can budget for:

• Joint activities and expenses
• Individual hobbies and interests
• Travel fund specifically for your wife
• Your personal interests fund

The key is planning for both together and separate activities. You don't want to become just roommates in retirement - you want to maintain your connection while also allowing for individual pursuits.

Many successful retiree couples have learned it's okay to have together hobbies AND separate hobbies, especially when the kids are grown up.

The Power of Strategic Tax Planning in Retirement

Let me dive deeper into why tax planning is so critical for Utah retirees, and why waiting could cost you significantly.

The Historic Tax Opportunity

When I show people the tax rate chart from 1913 to today, they're always surprised by how low current rates are historically. But here's what really matters: this is likely temporary.

With our national debt exceeding $36 trillion and growing daily, something has to give. The government needs revenue, and the most obvious source is higher taxes.

Real Utah Examples

Example 1 - The Salt Lake Couple: Tom and Susan from Salt Lake City have $800,000 in traditional IRAs and 401(k)s. They're 62 and plan to retire at 65.

Without strategic planning: They wait until required minimum distributions (RMDs) start at age 73. By then, if tax rates have increased from today's levels, they could be paying 30-40% more in taxes than necessary.

With strategic planning: We implement a three-year Roth conversion strategy during their early retirement years (65-68) when they're in lower tax brackets. They pay taxes at today's rates and eliminate future RMD requirements.

Potential savings: $150,000-$250,000 in lifetime tax savings.

Example 2 - The Provo Business Owner: Janet sold her Provo-based business and has a large lump sum to manage. Without proper planning, she could trigger:

• Higher ordinary income tax rates
• Medicare Part B and D premium increases (two-year lookback)
• Loss of certain deductions and credits

Strategic approach: Spread the income recognition over multiple years, utilize tax-advantaged accounts, and coordinate with her overall retirement timeline.

The Medicare Surprise

Here's something many Utah retirees don't know: Large Roth conversions or other income spikes can increase your Medicare Part B and Part D premiums two years later.

This is called IRMAA (Income-Related Monthly Adjustment Amount), and it's based on a two-year lookback. So if you do a large Roth conversion in 2025, you might see higher Medicare premiums in 2027.

The solution: Strategic, appropriately-sized conversions that keep you below IRMAA thresholds while still capturing the tax benefits.

Building Your Financial Team: Beyond Just an Advisor

One crucial aspect of retirement planning that many people overlook is building a comprehensive financial team. Your financial advisor should be the quarterback, but you need other players too.

The Essential Team Members

1. Independent Financial Advisor (Fiduciary): Your primary coordinator who sees the big picture and develops your comprehensive strategy.

2. Tax Professional (CPA): Handles tax preparation and works with your advisor on tax planning strategies. Remember: most CPAs do tax preparation, not tax planning. Make sure yours will collaborate on strategic planning.

3. Estate Planning Attorney: Creates wills, trusts, powers of attorney, and healthcare directives. Critical for avoiding what happened to my family.

4. Medicare Specialist: Helps navigate the alphabet soup of Medicare options and finds the lowest-cost solutions for your needs.

5. Insurance Professional: Evaluates life insurance, long-term care insurance, and other risk management tools.

Why Integration Matters

At Capital Wealth, we either have these specialists on our team or maintain strong relationships with trusted professionals we can refer you to. The key is making sure everyone's working from the same playbook - your Retirement Money Map.

Too often, I see retirees working with professionals who aren't communicating. The CPA makes tax moves that conflict with the investment strategy. The estate attorney creates trusts that the financial advisor doesn't understand. The result is a disjointed approach that costs money and creates confusion.

The Role of Artificial Intelligence in Future Retirement Planning

Here's something I've been thinking about lately that could dramatically impact retirement planning: artificial intelligence and its potential effect on longevity.

The Longevity Question

AI advances in medicine could accelerate finding cures for diseases that currently limit lifespans. This is potentially amazing news, but it raises important planning questions:

• If average life expectancy increases from 85 to 92 or beyond, will your current retirement plan support you?
• What about quality of life? Living longer is only beneficial if you can maintain independence and health.
• How do we plan for unknowable medical advances?

Why We Plan to Age 100

This is exactly why our Retirement Money Map plans to age 100 instead of the industry standard of 85. If AI extends average longevity to 104, our client plans automatically readjust because we built in that extra runway.

Most people think planning to 100 is overly conservative. I think planning to 85 in today's world is dangerous.

Consider this: You don't want to just survive to your planned life expectancy and then run out of money at 93 if you live to 95. That's a terrifying two years.

The Flexibility Factor

The key is having a plan that's flexible enough to adapt. Whether AI revolutionizes medicine or economic conditions change dramatically, your retirement plan needs to be able to adjust.

This is another reason why having a professional team managing your retirement is so valuable. We continuously monitor and adjust as conditions change, rather than setting something up 20 years ago and hoping it still works today.

Investment Philosophy: Why We Don't Chase Returns

After almost 20 years in this business, I've learned that the advisors who promise the highest returns are usually the ones you should avoid. Here's why our investment philosophy focuses on sustainability over speculation.

The Return-Chasing Trap

Every week, I have people come into our office asking, "Our current advisor got us this rate of return. Can you do better?"

What do you think every financial advisor's answer to that question is? "Yes, we can do better."

But here's the truth: Nobody can guarantee they can do better. Markets are unpredictable, and past performance doesn't predict future results.

What We Can Control vs. What We Can't

What we CAN'T control:

• Stock market returns
• Economic recessions
• Interest rate changes
• Inflation rates
• Geopolitical events

What we CAN control:

• How much you pay in taxes
• Your withdrawal strategy
• Risk management through diversification
• Cost management (fees, expenses)
• Tax-loss harvesting
• Strategic rebalancing

Remember what my dad always told me: "It's not how much you make, it's how much you keep that counts."

The Utah Conservative Approach

Utah investors tend to be more conservative than those in other states, which actually works in their favor for retirement planning. The goal isn't to hit home runs; it's to have consistent singles and doubles that get you safely through 30+ years of retirement.

Our approach:

• Diversified growth investments for inflation protection
• Protected accounts for stability and downside protection
• Strategic rebalancing to maintain target allocations
• Tax-efficient withdrawal sequencing
• Regular plan reviews and adjustments

Real-World Example: The 2008 Test

I mentioned earlier the clients who panicked in 2008 and locked in massive losses. Here's how our bucket strategy would have worked differently:

Traditional approach (all stocks):

• Portfolio value drops 40-50%
• Client panics and sells at the bottom
• Takes years to recover losses
• Retirement lifestyle permanently impacted

Bucket strategy:

• Stock bucket drops, but we don't sell
• Income continues from protected bucket
• Stock bucket recovers over time
• Retirement lifestyle maintained throughout

The difference? Peace of mind and financial security during market volatility.

Frequently Asked Questions About Retirement Planning in Utah

Q1: How much should I have saved for retirement?

A: The answer depends entirely on your lifestyle goals, but here's a framework:

The 4% Rule: Traditional advice suggests you can withdraw 4% of your portfolio annually. So if you want $50,000 per year in today's purchasing power, you'd need $1.25 million saved.

The Utah Reality: With Utah's cost of living and tax structure, many comfortable retirements can be achieved with less than the national averages - but you need a plan.

Our Approach: Instead of arbitrary rules, we reverse-engineer from your actual expenses and lifestyle goals. This often shows that people need either more or less than these generic formulas suggest.

Q2: When should I start taking Social Security?

A: This is incredibly complex with over 567 different filing combinations. The basic options:

• Age 62: Reduced benefits (about 75% of full benefit)
• Full Retirement Age (66-67): 100% of calculated benefit
• Age 70: Maximum benefit (about 132% of full benefit)

For Utah residents: Consider how Social Security coordinates with Utah state taxes and your other retirement income sources. Sometimes taking Social Security early makes sense if it allows you to delay tapping tax-deferred accounts.

Q3: Should I do a Roth conversion?

A: Roth conversions can be powerful, but timing and amount are critical:

Good candidates for conversions:

• Early retirees with gap years before Social Security
• People expecting to be in higher tax brackets later
• Those wanting to reduce future RMDs
• People concerned about rising tax rates

Utah-specific considerations:

• Utah taxes Roth conversions as ordinary income
• Must consider IRMAA impact on Medicare premiums
• Coordinate with Social Security timing

Our approach: Model different conversion scenarios to find the optimal amount and timing for your specific situation.

Q4: What's the difference between Medicare Advantage and Medicare Supplement plans?

A: This is a crucial decision for Utah retirees:

Medicare Advantage (Part C):

• Replaces Original Medicare
• Often includes prescription drugs
• May have provider networks
• Usually lower monthly premiums
• Can change plans annually

Medicare Supplement (Medigap):

• Works with Original Medicare
• Covers gaps in Medicare coverage
• More provider flexibility
• Higher monthly premiums
• Harder to change later

Utah advantage: We have strong Medicare Advantage options, but supplement plans offer more flexibility for those who travel or want choice in providers.

Q5: How do I avoid running out of money in retirement?

A: This is the #1 fear of retirees. Our solutions:

1. Comprehensive Planning: Use our Retirement Money Map to stress-test different scenarios.

2. Flexible Withdrawal Strategy: Adjust spending based on market performance and account balances.

3. Multiple Income Sources: Social Security, pensions, investment accounts, potentially part-time work.

4. Bucket Strategy: Combine growth investments with protected accounts.

5. Regular Reviews: Annual check-ups to adjust for changes in health, markets, or goals.

Q6: What's the biggest mistake Utah retirees make?

A: Planning to age 85 instead of 100. Utah has excellent healthcare and quality of life, which often leads to longer lifespans than national averages. Running out of money at 90 because you planned to 85 is a tragedy we can prevent.

Q7: Should I pay off my mortgage before retiring?

A: This depends on several factors:

Consider paying it off if:

• You have high-interest debt
• You want guaranteed peace of mind
• Your mortgage rate exceeds expected investment returns
• You have plenty of other liquid assets

Consider keeping it if:

• Your rate is low (under 4-5%)
• You have limited liquid savings
• You can invest the difference at higher returns
• You benefit from the mortgage interest tax deduction

Utah consideration: Property taxes are relatively low, so keeping the mortgage might make more sense here than in high-tax states.

Q8: How do I choose between traditional and Roth retirement accounts?

A: Consider your current vs. future tax situation:

Traditional accounts (401k, traditional IRA) if:

• You're in a high tax bracket now
• You expect to be in a lower bracket in retirement
• You need the current tax deduction

Roth accounts (Roth IRA, Roth 401k) if:

• You're in a low tax bracket now
• You expect to be in a higher bracket in retirement
• You want tax-free growth and distributions

Utah strategy: With Utah's flat tax rate, Roth conversions can be particularly effective during low-income years.

Taking Action: Your Next Steps

If you've read this far, you're clearly serious about having the best retirement possible. Here's how to move from reading to action.

Step 1: Assess Your Current Situation

Ask yourself these critical questions:

1. Do I have a written retirement plan, or just a portfolio?
2. What is my inflation strategy?
3. What is my tax strategy for retirement?
4. How will I generate income for 30+ years?
5. What happens to my spouse if I die unexpectedly?
6. Am I prepared for potential healthcare costs?
7. Do I understand my Social Security and Medicare options?

If you can't answer all of these confidently, you're in the 99.9% of people who need help with comprehensive planning.

Step 2: Get Professional Help

Look for an independent, fiduciary advisor who:

• Specializes in retirement distribution (not just accumulation)
• Offers comprehensive planning beyond just investments
• Has the licenses and experience to handle all aspects of retirement
• Works with a team of professionals
• Provides written, customized plans

Step 3: Create Your Retirement Money Map

Whether you work with us or another qualified advisor, make sure you get:

Income Planning: A clear strategy for generating reliable income throughout retirement

Tax Planning: Proactive strategies to minimize lifetime tax burden

Investment Management: Balanced approach with both growth and protection

Inflation Planning: Methods to maintain purchasing power over decades

Legacy Planning: Proper estate planning to protect your family

Step 4: Implement and Monitor

The best plan in the world is useless if it sits in a drawer. Make sure you:

• Implement recommendations promptly
• Review and adjust regularly (at least annually)
• Stay informed about changes in laws and markets
• Communicate regularly with your advisory team

Ready to Get Started?

At Capital Wealth Advisors, we've been helping Utah families navigate retirement planning for almost 20 years. We've created our trademarked Retirement Money Map for hundreds of families, and we've seen firsthand how proper planning can transform retirement from a time of worry into a time of confidence and enjoyment.

Our approach is different because we:

• Focus on comprehensive planning, not just investment returns
• Serve as fiduciaries, putting your interests first
• Maintain a team of specialists to address every aspect of retirement
• Provide ongoing support and regular reviews
• Offer complimentary initial consultations with no obligation

Remember: Having a portfolio is not the same as having a plan. If you want to see if we can add value to what you're currently doing, we'd love to meet with you.

Final Thoughts: The Legacy of Proper Planning

When I think about my dad's unexpected death and the chaos it created for our family, I'm reminded daily why this work matters so much. No family should have to go through what my mom experienced - dealing with grief while navigating financial uncertainty and legal complexities.

But more than avoiding tragedy, proper retirement planning is about creating the retirement you've always dreamed of. It's about:

• Freedom: The confidence to make choices based on what you want, not what you can afford
• Security: Knowing your money will last as long as you do
• Peace of mind: Sleeping well knowing you have a plan for whatever comes
• Legacy: Ensuring your family is protected and your values continue
• Purpose: Having the resources to pursue what matters most to you

The Retirement Money Map isn't just about money - it's about creating a roadmap for the best years of your life.

Whether you're just starting to think about retirement or you're already there but want to optimize what you have, remember: it's never too early or too late to create a comprehensive plan.

Your retirement should be a time of enjoyment, not anxiety. With proper planning, it absolutely can be.

Connect with Capital Wealth Advisors

If you're ready to create your own Retirement Money Map and want to see if we can add value to your retirement planning, here are three ways to connect with us:

📞 Call: 801-210-5500
📱 Text: Send "VISIT" to 801-210-5500
🌐 Web: capitalwealth.com

We offer complimentary, no-obligation consultations where we can review your current situation and show you how our Retirement Money Map approach might benefit your specific circumstances.

Remember: We can't help everyone, but for the families we do work with, we're committed to providing the best retirement planning experience possible.

Thank you for joining us on Retire Right Radio, and here's to your best retirement possible!

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